Which of the answer choices correctly ranks, from lowest risk to highest risk, the following methods of foreign market entry?
1. Foreign direct Investment
3. Indirect export
4. Product joint venture
A. 2, 3, 4, 1
B. 3, 4, 1, 2
C. 1, 2, 3, 4
D. 3, 2, 4, 1
E. 4, 3, 2, 1
finance Kathryn Goldsmith is the chief accountant for Clean Sweep, a national carpet-cleaning service
with a December fiscal year-end. As Kathryn was preparing the 2019 financial statements for
Clean Sweep, she noticed several odd transactions in the general ledger for December. For
example, rent for January 2020, which was paid in December 2019, was recorded by debiting
rent expense instead of prepaid rent. In another transaction, Kathryn noticed that the use of supplies was recorded with a debit to insurance expense instead of supplies expense. Upon further investigation, Kathryn discovered that the December ledger contained numerous such mistakes. Even with the mistakes, the trial balance still balanced.
Kathryn traced all of the mistakes back to a recently hired bookkeeper, Ben Goldsmith,
Kathryn’s son. Kathryn had hired Ben to help out in the accounting department over Christmas
break so that he could earn some extra money for school. After discussing the situation with
Ben, Kathryn determined that Ben’s mistakes were all unintentional.
What are Kathryn’s alternatives? Which would be the most ethical alternative to choose?